UPDATE: Raymond James Upgrades Telephone & Data Systems

In a note released Tuesday, Raymond James analyst Ric Prentiss upgraded shares of Telephone & Data Systems (NYSE: TDS) from Outperform to Strong Buy and raised the price target from $37 to $39.

Prentiss said the upgrade comes amid a turn around at United States Cellular Corporation, of which Telephone & Data owns 84 percent. Prentiss added that the turnaround is likely to monetize 565 and 3,892 of United States Cellular's non-core and core towers, respectively.

Telephone & Data Systems closed Tuesday at $25.55, up 8.8 percent.